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SOUTH KOREA: FX Reserves Decline Following Political Turmoil. 

SOUTH KOREA
EM BulletBulletSouth KoreaAPACEmerging Market News

 

  • The political turmoil in South Korea is showing up in the date with a drop in January’s reported FX reserves.
  • January’s reserves fell to $411.01bn from $415.60bn as the export orientated economy has had to defend its currency in the wake of severe political upheaval and a potential trade war looming.
  • South Korea’s currency, the Won, has depreciated over 5% in the last 3 months forcing the Bank of Korea to defend the currency in an attempt to smooth out volatility. 
  • Over the last three months, the Won is the worst performing currency of its regional peers and with the looming tariff war, a Central Bank determined to cut rates, and a slowing economy; it seems likely that the drain on FX reserves will continue for the Bank of Korea.
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  • The political turmoil in South Korea is showing up in the date with a drop in January’s reported FX reserves.
  • January’s reserves fell to $411.01bn from $415.60bn as the export orientated economy has had to defend its currency in the wake of severe political upheaval and a potential trade war looming.
  • South Korea’s currency, the Won, has depreciated over 5% in the last 3 months forcing the Bank of Korea to defend the currency in an attempt to smooth out volatility. 
  • Over the last three months, the Won is the worst performing currency of its regional peers and with the looming tariff war, a Central Bank determined to cut rates, and a slowing economy; it seems likely that the drain on FX reserves will continue for the Bank of Korea.